Owning and operating a trucking company is a difficult, stressful, yet rewarding job. If you own a trucking company, you have probably noticed that taxes on the trucking industry are complex and abundant.
When a trucking company first sets up shop, they will have to make sure they are fully compliant, acquire clients, and hire drivers. An owner-operator of a small trucking company is unlikely to be able to comprehend the many complex tax forms that their company will require.
You should hire a tax preparer who understands the trucking industry. You will find more information at this URL here. It is best to hire a company that specializes in trucking. When you interview a tax preparer for your business, you should ask them about their experience in handling different taxes, tax write-offs, and penalties. If you want to ask intelligent questions, you should familiarize yourself with the basic taxes you will be expected to pay as a trucker.
1. Fuel Taxes
Every state charges taxes for fuel and miles traveled across the state’s roads. Each state charges a different rate, and it used to be that drivers would have to register their vehicle with each state. As you can imagine, this was time-consuming and expensive.
Fortunately, in 1983 the International Fuel Tax Agreement IFTA was enacted. Under this agreement, jurisdictions act together to collect taxes. Each state has its own office, and trucking companies should file a report about the fuel they have purchased and the miles that they have traveled in each state every single quarter. If you do not file this on time, you will be subject to fines.
2. Weight Distance Taxes (KY, NY, NM & OR)
Some states charge taxes for the weight of the vehicle and the miles that are traveled. These states all have different filing dates, and if you utilize the roads in these states, you will have to keep up with them. It is always a good idea to hire a professional tax management company. They will have plenty of experience dealing with multiple state laws. They will also know how to handle all of the intrinsic paperwork involved with trucking.
3. Reefer Fuel Refund
Does your company operate reefer trucks? If it does, you are entitled to a tax refund. You should get money for every gallon of gas that you buy. You must use form 4136 to get this rebate. It is important to record every gallon of gas you purchase all year to get the most money possible.
4. Arkansas Motor Carrier Report
The Arkansas Tax Division is responsible for figuring out the value of the property of businesses. They will need to know the value of your trucks and all your other equipment.
It is important to be accurate with these numbers because no one wants an unexpected bill from the IRS. A tax professional will be able to make sure that every piece of equipment in your warehouse is accounted for.
The word taxes strikes fear into the heart of the most confident of people. When you know what taxes you are expected to pay, and you pay on time, you will have one less thing to worry about. You can concentrate on making your business the best it can be.